Over KRW 1.5 Trillion in Pension Premiums Miscollected Over Past 5.5 Years

Reporter Paul Lee / approved : 2025-09-17 07:27:12
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[Alpha Biz= Paul Lee] Seoul, September 17, 2025 — More than KRW 1.5 trillion in miscollected national pension contributions have been recorded over the past five and a half years, with administrative costs alone nearing KRW 1.9 billion, raising calls for systemic reform.



According to data submitted by the National Pension Service (NPS) and the National Health Insurance Service (NHIS) to Rep. Han Ji-ah of the National Assembly’s Health and Welfare Committee, there were 1.984 million miscollection cases between 2020 and June 2025, totaling KRW 1.541 trillion.



Miscollection occurs when subscribers double-pay contributions, or when changes in employment status such as resignation, job transfer, or business closure are not reported in time, resulting in overpayments. By year, the figures were:



341,000 cases (KRW 224.5 billion) in 2020

339,000 cases (KRW 255.1 billion) in 2021

350,000 cases (KRW 276.5 billion) in 2022

363,000 cases (KRW 308.9 billion) in 2023

357,000 cases (KRW 322.8 billion) in 2024



In the first half of 2025 alone, 234,000 cases were recorded, amounting to KRW 153.2 billion.



The scale of miscollections rose by 43.8% from KRW 224.5 billion in 2020 to KRW 322.8 billion in 2024. Of this, 170,000 cases worth KRW 70.4 billion remain unrefunded. Notably, around 5,000 cases from 2020 (KRW 1 billion) have passed the five-year statute of limitations under the National Pension Act, making refunds impossible.



Administrative costs related to correcting miscollections — including notices sent to affected subscribers — also remain significant. Between 2020 and mid-2025, administrative expenses reached KRW 1.884 billion.

 

 

 

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)

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